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tv   Closing Bell With Maria Bartiromo  CNBC  February 24, 2010 4:00pm-5:00pm EST

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that's the problem? mine are safer because american workers did it? and produced it? i don't understand the distinction. >> the cars that the problem were shipped from japan or something? >> what i said -- you know why the camry hybrid is the american car because you did bought an american car. that's what i meant which is produced here, supplied here and then -- so that's all -- >> many toyotas are produced here and supplied here, aren't they? we're pleased to have you produced and supplied here but world wide reputation begins in japan and stands behind wherever they are produce. sometimes they are produced in europe. >> that's very true. >> mr. toyoda, i was impressed with your opening remarks. in fact, i'm impressed with you're being here and i'm
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impressed with some of -- of what you have said of what you intend to do because we're really trying to go forward. i am trying and n my own questions to get some sense -- and the closing bell has sounded on wall street. hi, everybody, i'm maria bartiromo. you are watching live coverage of toyota president and ceo, akio toyoda testifying on capitol hill today facing some very tough questions from lawmakers on the company's massive auto recall. we're going to take you back to that hearing in just a minute but how we finished the day on wall street and a pretty good day as far as stock price perform pans higher, pretty much from the get-go. the dow jones industrial average ending the highs on the afternoon with the gain on the session 90 points and although it had been higher in the triple digits about an hour or so ago. 10373. s&p 500 was up 10 and the nasdaq composite higher by 22 1/2. right back to washington and we continue our coverage of the hearings.
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>> to get to the heart of my concern about secrecy and the culture of secrecy, i would go to the data recorder. otherwise known as black box. now, people in the united states are very familiar with airline black boxes because they know that in that black box is critical information and if you get to it, get to it fast, you can find the cause, you can put -- you can not only respond to those who have been hurt, you can put to rest some of the concerns as people begin to speculate what indeed caused this and they come up with, sometimes, wild conclusions. but that black box is critical. now, other manufacturers
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understanding just how important it is to get to the cause of the accident for all concern make the black box data available to download. i have had a hard time understands, therefore. given the fact that you are competitors make this data kown loadable easily. i have had difficulty understanding toyota invoking proprietary technology that allows only you, toyota, on the spot to download. why should we respect your proprietary technology any more than we respect the proprietary
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technology of other automakers? particularly, given the safety aspects of this manner and the fact that an accident has already occurred. why do you not want to clear the air as quickly as possible on what basis do you invoke some proprietary technology interest when your kem p-- competitors d not in the downloading area. >> let me respond to that question. first that, yes, we know that the -- free manufacturing have this information and then the read sercommercially available. toyota is also making this -- >> wait a minute. what's commercially available and when? >> the 23.
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general motors, ford, chrysler have this commercially available reader that this -- what you -- >> why don't you have such a reader? >> we're in the process of making it available commercially available by probably middle of next year which is ahead of the requirement, a. b, this year this time april in less than two months' time we are going to make hundred units of readers available at any region, any area. the point is that you know with the authority also in the past request, we made it always open. now this is the information the edr information is the owner's own information that with their consent we can make that information -- >> yeah it was available if you were on the spot. i mean we don't understand -- >> no, we don't hide it.
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at the request of authorities, like police requests or nhtsa request or some other government you know authority's request we had made it open. >> once you came as if there was something so secret that even you had to be there in order for law enforcement and regulators to -- to read it. i mean i just don't understand the difference. indeed let me make sure i understand what your testimony is. are you saying that the company is redesigning the black box so that it can be readable by law enforcement, by safety investigators and consumers? >> and owners of that. it should not be made available to anybody else unless there is a consent of the owners to my knowledge of the vehicle. >> you would not have to be -- toyota would not have to be
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present in order for the black box to be read, is that true? just like other manufacturers, you don't have to come to unlock the black box, personally. >> i don't know that technical detail to answer. >> well, that's the whole point, sir. one second. mr. chaffetz from utah, you have five minutes. >> thank you, mr. toyoda, mr. inaba, thank you, thank you for being here. very much appreciated. mr. toyoda, do you believe you're being treated the same as other manufacturers in the united states of america?
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[ speaking japanese ] >> translator: yes, i believe so. >> do you have any reason to believe that other automakers are excreted any differently bynib by -- are treated any differently by nhtsa? >> translator: no, i don't think so. >> if you could hand the document please, to them. theres a document dated july 6th of 2009. if you could take a look at this, please. this is an internal toyota document dated july 6th, 2009. mr. inaba, it has your name on it. my apologist if i announced it wrong. on page 7, which should be the second page, it says under the
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first bullet point, changing political environment, massive government support for detroit automakers. was that concerning? why was that brought up? >> yes. >> please. >> this is already -- i explained once, part of it. this is one of my orientation -- my orientation -- because i was a few days in to this position. and this is -- this is prepared by washington office to give me sort of, first look of it. i do not, honestly, recall all these notions. the only thing i said also, recall these quiet car regulation which struck me with a very strange feeling but that was the only thing but looking at all these papers, this certainty does not represent the toyota's over all guiding principle or belief. >> on the second page, it's
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under "key safety issues" and the first point it says usa dot nates under obama administration not industry friendly. is that a compliment or is that a criticism? >> i can't comment on that. >> what does it mean to you? let me go to the last point, mr. -- perhaps both of you could take this. "the new team has less understanding of engineering issues and are primarily focused on legal issues." can you explain what toyota's meant by that?
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>> i still don't understand what the big difference between the two, engineer, legal, both are involved anyhow. >> both, what? >> both side have been -- you know will be involved in this discussion anyhow. >> this is an internal toyota document. mr. toyoda, how would you read this? >> translator: i can't understand it. >> my understanding is that both toyota and nhtsa knew about this problem back as early as 2007. and yet it took so long to get it taken care of. is there a regulatory component here that was slowing us down?
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[ speaking japanese ] >> translator: today i came to understand that this particular document was prepared as a part of the presentation material addressed to the new president. however, i do not know the background of this writing, nor do i know how this document was prepared. and therefore, i apologize but i simply do not know the answer to your question. >> do you believe it's true? do you stand by it or do you want to distance yourself from it?
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[ speaking japanese ] >> translator: well, i need to thousand further. that isn't to say i cannot understand the english written here. >> now once into this position i'm beginning to learn myself and form my own opinion so this is not consistent or i'm learning is this is -- does not represent my feeling today and of course i will learn more. i would like to build a very good relationship with nhtsa and so that we can work together very good. >> do you -- explain to me the negotiation that happens between an auto manufacturer and nhtsa. often the word "negotiation" is used. how does that work? what is "negotiated" in your --
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>> i have met nhtsa officials twice so i am not able to explain what the negotiation means so it is still a little bit too premature for me to say anything but i don't know certainty. negotiation is -- doesn't sound like a good word. there's a discussion, yes. but also exchange of information, yes. and we oftentimes get the good guidance from nhtsa, from an official, we'll listen to it, respect him. they ask us information, we provide them. so this is sort of like the nature of the relationship as it stand whether it falls into negotiate or not i can't -- i don't know. >> do you believe, mr. toyoda, that american unions have an undue influence in this process?
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[ speaking japanese ] >> translator: since i haven't understood the content of this i do not know how i should answer this question. i apologize for that. >> to -- toyota hired some former nhtsa employees. why would it be appealing to hire former nhtsa employees? >> well, first of all, those two gentlemen who came from nhtsa, i know personally. so, of course, having -- >> how did you know them? how did you know them? >> i just started meeting him more often because i'm a president of that company and meet them when i'm --
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>> did you know them before they were hired? >> no, i did not. >> no. >> so i'm beginning to know their personality, how their professional standard so i have a very high respect for both you know gentlemen in professionalism and also ethical standard, a. so it doesn't matter whether they're coming from nhtsa or not, to me it does not. >> and do you believe that the relationship between nhtsa and toyota or other manufacturers is too close to -- too cozy? >> i don't believe so. >> gentleman's time has expired. mr. kucinich of ohio. >> i thank you, gentlelady. we have heard mr. toyoda say that toyota grew too fast. it's interesting that's being told us as we're investigating cars that are accelerating out
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of control. it's ironic, but i would submit a perhaps misleading parallel, because the problem is not that you were moving too fast, but that you were moving too slow. too slow to recognize -- >> we're watching the hearings of the ceo of toyota right now on capitol hill. let's get to phil lebeau. bring him in here on the conversation, and phil, you've been watching intently, as have we. have you heard anything that strikes you? >> reporter: no, it's exactly what we expected to hear from akio toyoda and as well as inaba. lots of apologies. they've apologized profusely for the accidents involving unintended accel raise, for taking as long as they have in terms of the recalls going forward and they've also made the promises that we expected them to make. to go further. to be more diligent about listening to customer's complaints to make sure that are there no further problems with the vehicles that have been recalled. that said, any of the really pointed questions, maria, the
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ones where they ask specifically, did you know this was happening regarding your vehicles? we've heard inaba say, i don't recall being at a certain meeting and we've also heard akio toyoda say, i'm not familiar with the document that you're talking about and that's not surprising because they're asking really detailed questions and i am not sure that you would expect the ceo of a company in japan to know some of the detailed answers that some of the congressional leaders would like to have answers to. no doubt that will not please a lot of people in washington at the same time it's not a surprise. largely of what we expected. >> it's almost just like desserts or so for toyota. toyota's been beating the u.s. automakers for so many years in terms of market share and in terms of quality surveys, and now this. do you think that in some regard there's a bit of overboard going on in terms of perhaps protectionism in an international automaker who was number one for so long? >> reporter: you bet. >> and now we see everybody
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getting on this band wagon beating up toyota. >> reporter: two things, maria. clearly that. clearly members as asking questions. a big three bent if you will. >> exactly. >> reporter: would suggest that toyota has benefited over the years and the big three have not. on the other hand, maria, i've noticed deferential treatment from those members who clearly have toyota plants in their district or near toyota plants. one congresswoman went on and on know about a great corporate citizen as toyota. >> what do you think happens in terms of toyota and its leadership and the quality that we may see going forward? how significance is this hit, do you think, on toyota for the future? >> reporter: well the estimate is that sales will take about a 20% hit for this year. now, that remains to be seen. it's how long this drags out, maria. if this is something that continues to be on the front page, two months, three months from now, then this is going to be really tough from toyota to
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come back from in the next couple of years. but if the fix that toyota's already put into place for these millions of vehicles, if they stick and there are no other accidents, in other words, nothing unusual happens, that's going to be the worst thing for toyota. if there were to be an accident, maria, and you cannot blame it on a sticky gas pedal or a floor mat and then toyota's got real issues and if that doesn't happen they should be okay. >> phil, thanks so much. phil lebeau on the latest out of that hearing in washington. you can watch the headquarter right now as it continues on meanwhile the fcc is making a push to upgrade the nation's broadband system. will imposing new regulations actually end up hurting broadband development? the chairman of the ftc answers those concerns when we continue on the "closing bell."
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welcome back. lots of news coming out of washington today. aside from the toyota hearing that we've been watching here on cnbc. federal reserve chairman ben bernanke also telling congress today that interest rates are likely to remain low for an extended period of time to support the economic recovery. that's what really set the tone for stocks today and saw a rally in the market by 91 reports. cnbc's reporter steve liesman has more. >> reporter: fed chairman ben bernanke said those magical words that markets wanted to hear today, that the fed would stay exceptionally low for an
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extended period. he said that before but market his their doubts after fed hiked discount rate last week and the treasury, then, revived a program that helps the fed train liquidity. that is ultimate lie a program that could make financial conditions tougher. bernanke attempted to be crystal-clear on fed policy. >> the fomc continues to anticipate that economic condition conditions including low rates or resource utilization subdued in inflation trends and stabile expectations are likely to warrant exceptionally low levels of the federal funds rate for an extended period. >> reporter: there they were, initial bond market reaction just in. the fed chairman succeed and was actually perceived as a little bit less upbeat on the economy than expected happened. you could see the rally there which fizzled off in the day's end. growth at the 4%, but hold on, it was fueled by inventory and government spending, which are going to wear off. job losses are slowing, but hold on, hiring remains weak.
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financial markets are improved, hold on, bank lending is still contracting. against that backdrop, the fed expects the inflation to remain subdued. a key outlet suggests that interest rates are on hold for a while. in the question-and-answer period bernanke did not throw his weight behind the so-called volcker rule, kind cool on. in contrast, bernanke supported a more limited proposal in the house that would let regulators ban certain risky behavior by banks, rather than a blanket prohibition. >> steve, thanks very much, steve liesman. also in washington, president obama meeting with some the nation's top ceos today. speaking at a meeting of the business roundtable the president laid out his economic agenda to help americans remain a competitive force in the global economy, he said. part of that plan, includes reforming financial regulation and the health care system. critics say it is proof that he does not believe in the free markets. the president said that couldn't be further from the truth. >> i want everyone in this room to succeed.
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i want your shareholders to do well, i want your workers to do well, i want you to do well. now i also believe this, government has a vital, if limited, role to play in fostering sustained economic growth in creating the foundations for you to succeed. >> more on that coming up on the "closing bell." but up next, the chairman of the fcc joins me to talk about the federal communication's plan to improve the nation's broadband service. then he'll answer concerns that imposing new regulations on service providers could hurt progress in the industry. back in a moment. with julius genachowski.
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welcome back. let's take a look at the business headlines at this hour. the securities and exchange kmilgz voting by a margin of
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3-to-2 to adopt an alternative uptick rule. the restrictions would last for that entire day and the following day. the fragile housing market hitting a major stumbling block. new home sales unexpectedly plunged more than 11% in the month of january. that, to a record low, annual rate of 309,000 units. it is the third straight month that new home sales have declined despite the extension of the first-time home buyer's extension credit. in the united states, this just weeks after google announced it would build its own high-speed fiber optics system. the nation's largest internet services provider are coming under pressure from the s.e.c. to upgrade their broadband network. this is part of the fcc's big push to improve the country's broadband service the agency laid out a list of priorities last week ahead of a broader plan due on march 17th. chairman julius again chowski wants most u.s. households by 2020 to have internet service
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that is ten times faster than what we have right now. mr. genachowski joins me right now from washington. mr. chairman, good to have out program. welcome to "closing bell." >> thanks, it's good to be here. >> can you go through the priorities as far as you're concerned in terms of getting this plan forward? >> sure. one of the most important things as we tackle the challenges of our economy is to make sure that we have a world-class, broadband infrastructure in the united states. had is the key component to competitiveness to the united states in the decades ahead, it's a key to be able to create jobs in the future at here at home. >> how do you do that, then? what needs to be put into place in order to make this a reality? >> well, there are a few things. today we've been speaking about the opportunities around mobile broadband. we have in mobile broadband a chance to lead the world on one of the most exciting platforms of innovation for next ten years. problem is, spectrum is the oxygen of our mobile networks
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and because of the high use on smartphones and mobile computers we have a looming spectrum shortage in the united states which is a looming competitive crisis for us. we need to find a way to free up more spectrum. >> but how do you do that. >> well we're going to move forward with a plan to tackle some of the existing uses of spectrum that are inefficient and make sure that we reallocate them and aulction them from mobile broadband providers. >> what is your thoughts, mr. chairman with what cisco and google's doing? they are trying to have their own lead in terms of making this system faster. >> well, i think what we see in the cisco announcement and the google announcement is a recognition that for american technology companies to succeed, we need a world-class broadband infrastructure. we have extraordinary capacity for innovation in the united states, extraordinary capacity for entrepreneurship but we're
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lagging behind key countries in our broadband infrastructure. if we want the u.s. to be the destination, the place where the next generation of exciting innovations and new companies are created we need to take care of our broadband infrastructure at home. and we see in some of those announcements companies getting serious about delivering the country what it needs. >> so you're pleased with that then? >> we are pleased with it. you know we've -- we're in the process of setting goals for the country for 2020. increasing dramatically the speeds and the universality of the broad band that we have. these are important sneps a very good direction. >> chairman, let me ask you about some of the -- sort of pushback, from some of the providers. because in a 14-page letter to your agency, broadband providers -- at&t and verizon, alongside trade groups -- argue that this move could be and would be extremist. that was their word, not mine. do you think that too many onerous rules could in fact harm the process of moving forward for broadband?
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ster >> well the focus that we have, job one is getting the policies right for broadband for the united states. there are letters that go back and forth at the f all of the time debating in some cases some esoteric issues that don't go to the heart of what we're talking about right now, which is how to unleash investment, promote innovation, promote competition and make sure that we have leading broadband infrastructure. we've had enormous support from many, many parties including those companies in our process to do the things that we have to do around unleashing spectrum, which we've talked about, taking old programs that are designed to promote yesterday's communication in fratra and update to promote 211st-century communication's infrastructure. i am confident that we wilrey veal and-- reveal announcement the news. >> part of the plan, mr. chairman is also including this overhaul of the $8 billion federal phone subsidy program.
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can you shed more light on this? the large phone and cable companies are concerned about this, saying that it could change how the internet lines are regulated and perhaps move back to impose the regulations that were lifted during the bush presidency? >> this is -- it's actually reforming the universal service fund implicates different issues. we have a fund that you mentioned. it's $8 billion a year, and every day it promotes yesterday's communication's infrastructure. it's done a good job over the last several decades of making sure that we have universal telephone service in the country all over america, rural america, every town in the country. now we have to update it for broadband. we have to make sure that we ring inefficiencies out of the program, that it's operating very effectively, but ultimately, that it's supporting the next generation of communications technologies, broadband, so that we have a world-class foundation for innovation in the united states. >> and you're really talking about upgrading things in a
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number of industries, really, because it's got implications for the electronics industry, monitoring electricity usage at home, i have at internet, technology, speeding -- getting speed in schools. so tell me what you're envisioning in terms of education. >> well, this is -- it's a critical point because a world-class broadband infrastructure will not only promote a successful competitive economy in the united states but it will be a critical part of the solution to so many of the challenges that you mentioned. a modernizing our education system means that we have to make sure that all our kids have access to broadband have, access to the best information, the best teachers, the best tutors. same thing for health care. we need to not only make our medical records all electronic but we need to make sure that hospitals, clinics, doctors, patients are connected. and on energy make sure that our broadband is integrated into the
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smart grid so that we can get the kind of savings and innovation that we need. >> we'll leave it there, chairman, great to have you on the program. appreciate you're time today. julius genachowski introducing us the fcc clairem. will apologize today on capitol hill for the automaker's massive recall. is it too late to repator brand's image? boss: come a long way, that's for sure. and so have you since you started working here way back when. gecko: ah, i still have nightmares. anncr: geico. 15 minutes could save you 15% or more on car insurance.
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welcome back. toyota president akio toyoda is on the hot seat right now before washington in front of a congressional panel. have the hearings and the company's actions done enough to restore confidence in the toyota brand? we get the thoughts now from senior editor from he attended the hearings on capitol hill which by the way is still going to. alongside morningstar auto analyst dave winston. good to have out program. welcome. >> good afternoon, maria. >> good afternoon. >> kick this off with you, you were at the hearing today. how did he do? >> i think it's been an afternoon of frustration, frankly, for everyone involved. there are a lot of questions from congressmen. some who really don't know what the questions should be themselves and mr. toyoda and mr. inaba, neither one is forthcoming with much in the way of answers. not necessarily because they don't want to have the answers but because there are no answers right now. >> one of his answer was, i'm
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sorry, i'm sorry, i'm sorry, right? how far does an apology from the ceo go in terms of repairing the trust that toyota owners had with this company? >> i think that tale will be told in the sale's charts, maria. we'll see in this month and in the subsequent months whether toyota cars are selling or not. it's a tough environment anyway right now, as everybody knows, in the auto market. and toyota could really take it on the chin with this. if they're not selling cars and it's quite likely they might not be and then it will be a tough road to w road to hoe. >> a rough road for the automakers. dave, put toyota aside for a moment, is this the kind of fumble that the u.s. automakers needed to gain some ground and momentum as they try to recover? i mean, toyota has been in the lead in terms of market share for a decade. >> i wouldn't say they needed it because they've done a fantastic job and particularly gm and ford in revamping their car product lines and hopefully over time they will become much more --
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much less truck reliant but it's a fantastic opportunity because some consumers and although i don't think all that many but some cust mercwho were all toyota buyers and finally give someone like the ford malibu or the ford fusion and i love what buick is doing with their line right now. i don't think that the americans appreciate with what -- toyota has made. >> what do you predict, dave, how this company proceeds from here? what are you expecting? >> in toyota's case, i think it's going to be many more apologies and ultimately what we're going to -- what i'll be looking for are the results of nhtsa's investigation into the electronics. because if they come out and say everything's fine i think that'll really cause the bulk of this storm to pass. and that'll calm a lot of consumers down and hopefully we can all get onto business as
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usual as although it never seems to happen longer in thisry. >> what about that, bill? it appears that the true cause of the recall is uncertain because you've got so much speculation about the electronics. the longer this uncertainty drags on what kind of damage does this brand incur, and do you think it can gotay point where it is irruptible. >> it's tough to say right now, maria. toyota definitely needs some closure on this situation though. with all of this sort of mystery involved with what's really wrong, whether the fixes that have been involved already, the recalls that we've seen already are even really addressing the problem. when you have that sort of uncertainty in a buyer's mind and prevalent throughout the market, it's hard to say what may happen in the coming months unless there's some sort of closure on this whether it comes from nhtsa, when it comes from toyota or a combination of the two, unless that happens, buyers may be very reluctant. >> buyers will be reluctant, sure, because they're not sure what to expect in terms of -- in terms of the brand and that's
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why we've already seen a really serious tick down in the sales of the company. >> absolutely. there's -- it's not going to get any easier. it's going to get harder before it gets easier for toyota and unless they can find some way to bridge this gap right now with perception that they have with the customers that somehow or another toyota's not making them like they used to anymore, it's going to be a very, very difficult time for toyota. >> let me ask you, dave, about the stock here. when you look at toyota's stock, are you concerned about further declines, or do you you think it's leveled off here? what would you be advising clienting to do. >> well, to be fair we can't actually give clients advice. we're not registered in advisers but my analysis of the stock is the following, as long as the situation does not get drastically worse know that the floor mat recall issue and the pedal recall issues i'm not more concerned of the severe decline. it's moved out and improved a bit since the initial 20% decline in late january when this issue all began. yes, there's going to be a huge
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class action payout eventually. that'll take some time to work its way through but i would say to media and everyone else who asked my opinion toyota their balance sheet is a pofortres. over $40 billion translated to the yen of the dollar. it will take an enormous amount of additional distress to really severely hurt toyota. >> all right we'll leave it there. gentlemen, appreciate you're time on this. up next my one one with the president of the business roundtable. find find out he thinks that president obama is take the right steps to fix the economy and remain competitive with the global economy? hello i'm guy johnson, here are the stories watching in europe tomorrow. all eyes are back on the banking sector. may once been the larger bank in terms of balance sheet terms but rbs remains in the red and is
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expected to post grim annual results first thing. the decision to payout 1.3 billion pounds in bonuses probably not helping the company's image but the government's going along with this. credit agricole will bring their results. and shining a life from europe's budget deficits we'll be watching closely the european commission's latest interim forecast for the euro zone economy. tune into cnbc world to catch all of the action overseas. i'm guy johnson.
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welcome back. president obama met with some of the country's top business leaders today if an address to the business roundtable. he touched on his economic agenda especially the administration's controversial plan to raise taxes on multinational companies. this is his latest attempt to sue the white house's relationships with big business. in a first on cnbc interview i'm joined rithe now by john
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castellani. he's business roundtable's president. nice to have out program. >> nice to be here. >> how was your meeting with president today. >> it was a very good meeting. we had a very good exchange of ideas and discussion about what it takes to do the one thing we all agree on, and that is, get the economy going and get jobs growing and so we talked about it's president talked about how he is error much recognition -- has a good recognition of what the private sector's role is. we talked about the uncertainty and how it's affecting our willingness to invest and we talked about some of the rules around some of the issues that are driving some of the uncertainty in how we have to get those provisions in whether it's health care or financial regulatory reform or energy, we have to get those provisions right so that they match the market and the market conditions that allow us to peak. >> what are the most important things that you would like to see as a businessperson in term the room today? what's most important in terms
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of policies coming out of washington? >> first, it's certainty. that is we have to remove the uncertainty that surrounds regulatory reform, around the energy sector. we and the president agree that exports are key to driving economic growth and job creation. but when we have exports, we can't have just put it in a box here and deliver it to a country with who we don't have a trade agreement. we need to be more aggressive as a nation and find a way to make that politically acceptable. just as importantly, we need a tax structure to compete on a level playing field. we said willing to work with him to find us a way do give us a level playing field. that's one of the most important
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things. >> let's talk about the certainty. that's one issue people have discussed on this program. the fact that when it comes to, for example, financial firms, they don't know what they're going to look lack because of lack of clarity. taxes, fees, what's going to happen in the next year in terms of proprietary trading, et cetera. >> he recognized that certainty was important. for example, you talked about the financial sector. we both recognized the need for reform and modernizing the financial sector. but most of the ceos are users. we need to be able to have access to capital around the world to be able to invest so that we can grow and create jobs. we need to know the rules. we need to know, for example, that we can use the kind of financial instruments that allow
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us to smooth if currency fluctuations without having to take from us undue resources in terms of cash. cash that we would otherwise invest. >> what about the international tax? >> he said we disagree. he said he changed his proposals from last year. had changed them slightly and indeed, he had. they're about half, but every extra dollar that a u.s. company has to pay in taxation is a dollar our foreign competitors don't pay. we need to find a way to make sure we're not disincentivising. >> all right. great to have you. thank you. now, let's go to the nasdaq markets. melissa lee is there with a preview. >> at the top of the hour, it is all about following the smart
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money. the new stocks they've added into their port foal area. we've got the ceo of a tower company, loved by hedge funds. top of the hour on cnbc, so don't change that channel. >> thanks so much. up next, we'll tell you what could move markets tomorrow. you're watching cnbc, first in business worldwide.
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this is what i'll be watching for tomorrow. jpmorgan holds its investor day and analysts are waiting to here what jamie dimon has to say about regulation, the economy and lending environment and what he thinks the bank needs to do to perform better. something he said it should have done in 2009. tune in tomorrow for initial and continuing claims. look for initial potentially to rise. we'll also cover nonadjusted and the emergency categories. tune in 8:30 eastern. i'm diana olick in
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washington. another day, another data series in housing. this time, it's the sell prices of homes with fannie and freddie homes. tomorrow at 10:00 a.m. let's check on tomorrow's movers and shakers. the one and only matt nesto. >> the one and only. i'm getting a tattoo before they change it. look at esrx. the stock is flying, about 96, 97 bucks a share. the revenue's up 49%. much better than expects at 8.2 billion. they see their adjusted earnings at 480 to 5. the market just loving it. limited brands looks to be about 3% higher hoed.
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the fourth quarter results come ng above estimates. the sales in line at 3 billion. it looks to be 5 to 10 cents surrounding. about 40 versus 60. sharply higher now. 7%. it's been gaining momentum when i turn my back on limited brands. they see february same-store sales up. that is versus their previous estimate for flat, comparable stores for february. then also, crm giving tmi sales force. that is nesto's headache because the stock was up. the stock was down. the stock is now back up again. it's impossible to sort it out. the best we can


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